markets before we head off to kwauk "squawk on the street. markets are down a bit dow off just marginally. the s&p 500, off about 13 points join us tomorrow "squawk on the street" begins right now. ♪ good mod monday morning, welcome to "squawk on the street." coming off the best week for the s&p since june and buckling up for another round of earnings from retailers, inflation data, house leadership elections and more than a dozen fed speakers our road map begins with the president preparing to deliver some remarks after meeting face-to-face with chinese president xi for the first time since taking office. we'll take you there live. >> plus, crypto chaos, the ftx bankruptcy investigations and so many other ripple effects being

questioned right now across the industry and tough and uncomfortable decisions. disney's ceo bob chapek sending a memo to his staff outlining layoffs, a hiring freeze and cost-cutting ahead as we wait for the president, let's begin with the fallout involving ftx. lots of reports over the weekend highlighting the crisis surrounding the embattled crypto exchange sam bankman-fried's alameda trading firm was leveraging the firm's native token as collateral lot of discussion about legal strategies from here on out, jim. fta looking at $900 million against $9 billion in liabilities. >> it's pretty clear if you go to their site, listen, we're not doing anything and overlevered to me means the possibility, david, that there's nothing left >> nothing i mean, we just don't know >> no, but --

>> there's so much more that we don't know than we do. >> true. >> jim, it's not just, though, ftx, and the focus there, as important as that is right now it's also, and i'm sure you received over the weekend, the endless sort of emails and texts from people saying, what may be next what are the ripple effects? we just said that. what are the secondary consequences what's the impact in terms of just confidence overall? crypto what does it mean for certainly stablecoins? you have people pulling the attestation report from tether, for example, the very popular stablecoin most often used to buy bitcoin. >> right, $68 billion and we have no idea what they really own. they've been very secretive and unwilling to put out what their portfolio is >> it doesn't take much when it comes to these kinds of things for there to be crisis of confidence because that's what you're talking about but again, say nothing here, other than this is a focus now, right? this is -- so you people are pull, as i did, this attestation

report it said, what backed up tether, for example, as of the end of september? most of it was u.s. treasury bills. money market funds however, there also are corporate bonds and precious metals, other investments. >> how much is those it's significant >> it's questions like that that continue to sort of swirl. there are any number of hedge funds, perhaps ones that were operating more in sort of the crossover between public investments and private investments that may own a lot of these coins they're trying to sell their liquid coins right now because who knew these coins were almost considered as an equity, investment, in other words, if you owned ftt, it up and down based on the fortunes of ftx >> solana, you know, we put a little bug on the right-hand column we have solana why don't we have johnson & johnson? why don't we have amazon why do we have solana? they're like, solana is that, like, the first

national wbank of nothing? i question it. i question that we -- do we give some sort of -- oh >> let's get to the president in bali >> good evening, everyone. let me start with a few words about the recent elections held in the united states what we saw was the strength and resilience of the american democracy. we saw it in action. the american people proved once again that democracy is who we are. the strong rejection of election deniers at every level from those seeking to lead our states and those seeking to serve in congress and also those seeking to oversee the elections and there was a strong rejection of political violence and voter intimidation there was an emphatic statement that in america, the will of the people prevails. i have traveled this week, and it's been clear just how closely the world and our allies and our competitors as well have been following our elections at home. excuse me.

i have a little cold what these elections showed is that there's a deep and unwavering commitment in america to preserving and protecting and defending democracy. now, let me speak briefly about our agenda over the past few days in egypt, and in cambodia, and here in indonesia. in this moment of great global challenges, from global inflation to the climate crisis to russia's brutal war against ukraine, we're bringing together the broadest possible coalition of partners to deliver results at cop 27 in egypt, i made it clear that thanks to the bold agenda of our administration, we'd pursue, from day one, to tackle the climate crisis and advance energy securities at home and around the world. the united states will meet our missions targets under the paris agreement. and we're going to keep working with our partners to support the most vulnerable countries in building resilience to climate impacts and to align global

ambition with the 1.5-degree celsius goal while super charging our clean energy transition at the u.s. asean summit, i laid out a commitment to working with our partners in the indo-pacific to ensure a future that's invite t vital to this region that's free and open and prosperous as well as secure. and i met with our allies from australia, japan, and the republic of korea, underscoring our commitment and deepening our engagement with our closest partners and strengthening cooperation among our closest allies and i just met in-person with xi jinping of the people's republic of china we had an open and candid conversation about our intention and our priorities it was clear -- he was clear and i was clear -- that we'll defend

american interests and values, promote universal human rights, and stand up for the international order and work in lockstep with our allies and partners we're going to compete vigorously, but i'm not looking for conflict i'm looking to manage this competition responsibly, and i want to make sure that every country abides by the international rules of the road. we discussed that. the one china policy -- our one china policy has not changed has not changed. w we oppose unilateral changes in the status quo by either side and we're committed to maintaining peace and stability in the taiwan strait it was also clear that china and the united states should be able to work together where we can to solve global challenges that require every nation to do its part we discussed russia's aggression against ukraine, reaffirmed our shared belief in the threat or the use of nuclear weapons is totally unacceptable, and i asked that secretary blinken travel to china to follow up on

our discussions and continue keeping the lines of communication open between our two countries. looking ahead at the g20 meetings tomorrow, we're going to be taking on the very issues that matter to the people's lives not only here but also our allies and our partners. that means tackling the suffering that russian aggression has unleashed, not just in ukraine, people, but the people around the world, particularly food insecurity, and strengthening the fundamentals of our global economy for everyone support for debt relief, reforms for multilateral development banks. investments to bolster global health security. and to make sure the world is better prepared for the next pandemic the g20 has been an important forum for the world's largest economies to work together for the good of people everywhere. and i'm looking forward to our meetings tomorrow. let me close with this on my first trip overseas last year, i said that america was back back at home, back at the table,

and back to leading the world. in the year and a half that's followed, we've shown exactly what that means. america's keeping its commitments. america's investing in our strength at home america's working alongside our allies and partners to deliver real, meaningful progress around the world. and at this critical moment, no nation is better positioned to help build the future we want than the united states of america. i'm happy to take questions, and i'm told there are going to be four questioners i'm not going to do ten questions from each questioner, all right? make that clear at the outset here ken thomas, "wall street journal. >> thank you, mr. president. you said at the outset of this meeting that you did not want competition to turn into conflict based on this meeting today, do you believe a new cold war with china can be avoided, and

specifically on the issue of taiwan, you spoke about intentions do you believe china is preparing, intending to invade taiwan at some point and what warnings did you issue to president xi if he were to take such action >> well, to answer the first part of your question, i absolutely believe there need not be a new cold war. i've met many times with xi jinping, and we were candid and clear with one another across the board, and i do not think there's any imminent attempt on the part of china to invade taiwan, and i made it clear that our policy on taiwan has not changed at all it's the same exact position we have had i made it clear that we want to see cross-trade issues peacefully resolved, and so it never has to come to that. and i'm convinced that he understood exactly what i was saying i understood what he was saying.

and look, i think the united states is better prepared than any country in the world economically and politically to deal with the changing circumstances around the world and i think that -- i think xi jinping is -- we agreed that we would set up a set of circumstances where on issues that were -- that we had to further resolve details, we agreed that we would have our chief of staff -- our -- the appropriate cabinet members and others sit and meet with one another to discuss the details of any -- every issue that was raised, and we raised a lot of issues son kim, associated press. >> that's the president on a three-leg trip, as you know, to egypt, cambodia and now indonesia in bali at the g20 talking about his first in-person meeting with president

xi obviously, the headline's going to be, he was clear and i was clear, i'm not looking for conflict, jim. i want to manage this competition responsibly. >> well, look, he may not be looking for conflict, but there were two ways to approach trying to rein in china one was trump's way of putting on tariffs, which did affect americans. and the other is to go after the military and make the military second rate by not using any of our semiconductors and i don't understand how you can have anything other than a pretty forceful competition -- david, you know this i mean, our semiconductors are far better than anybody else's you can't really make what i would regard as really serious forward-looking weapons unless you have our semiconductors. >> right >> they have second-rate semiconductors >> and we're trying to make sure nay they don't get ahold of them >> and they're trying to make sure they don't get ahold of asm

and applied materials. those are -- you really have to stop them from getting those machines, kla. >> there are no shortage of points of conflict between the two countries. but that said, this was intended to open the lines of communication in a much more regular way again. >> you think it's the sell stuff? not sell lam research but sell boeing >> that's not the sense. it's much more simply about re-establishing the lines of communication before tensions rose even higher speaker pelosi's trip to taiwa of some time ago, the increased military activity of the chinese on the strait. those kinds of things. so, just trying to take the temperature down you heard the president, though, saying that it doesn't have to result in another cold war >> i think it's interesting that the president doesn't go very public and just say, we have offered them all the vaccines they want. everything and they are not willing to take

care of the illness that way it would be tremendous if he said that, because i think it would be right in xi's face, and we have offered, and i think it's really a very strange situation that xi has traced out, carl, because once again, they had record highs this weekend. >> they did. i mean, obviously, it's not enormous numbers 400 or so. but it's highest in a year for sure meanwhile, yellen is on the tape also in bali saying that she is calling on china to roll out a more effective vaccination campaign >> there we go i mean, look, i think the world's whole gdp has been kept back by the chinese. i mean, obviously, the russian gdp is not that much, but we discovered that russia turned out to be far more important than we thought when it comes to oil, fertilizer. >> other commodities that the world needs. >> we just did not think through how powerful russia was. we just looked at them as being the size of texas. those were irrelevant. what matters is they turned out

to have a lot of power in terms of our inflation >> right well, much of it starts with that key commodity oil. >> yeah. and the misjudgment of germany on how to be able to heat their homes. but apparently that's been taken care of by a massive infusion of natural gas not only provided by the united states but china with the profiteering in china being regard ex rather extraordinary >> yep >> me going back to our market, i'm wondering whether jay powell's getting windfall here i've been formulating a theory that we're not going to have a traditional kind of recession. we're going to have huge layoffs in silicon valley, lot of companies never going to come public, and this is not a cat and deere recession, but bitcoin and the collapse of crypto, which i think will happen, canceled right along with the

layoffs that we're seeing in silicon valley >> bunch of economic forecasts came out last night. morgan stanley with their job outlook for next year isn't looking for a negative print maybe we average 75, trough at 50 k a month >> right, but does an engineer at facebook know how to be an engineer at raytheon that's what i want to know >> i'll give you the answer. >> what? >> probably not. actually, that's not a definitive answer. >> does someone who worked at jane street? >> there's a lot of software involved in what raytheon does as well, isn't there lot of code, i'm sure. it's not just about -- >> i think you can retool your brain. >> mobility. >> speaking of which, when we come back, we'll get a closer look at some of the hiring freezes we're hearing about at disney, the memo from bob chapek and the blockbuster opening weekend for "black panther: wakanda forever" n'gonyer dot awhe. what if you were a major transit system

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disney planning to institute a targeted hiring freeze as well as job cuts, according to the international memo bob chapek sent to company executives he said that disney will look at every avenue of operations and labor-defined savings. "i'm fully aware this will be a difficult process for you and many of your teams we are going to have to make tough and uncomfortable decisions, but that is just what leadership requires, and i thank you in advance for stepping up

during this important time." lot of discussion, jim, about why this wasn't part of the discussion on the earnings call earlier in the week. >> i think so. oo i'd like to know how much chapek was really involved here it does seem like this is a team project, and david, my travel trust owns it. >> still >> yeah. no, travesty i have a meeting on thursday >> you have been negative on this stock now for quite some time i don't understand why you don't sell it. why you didn't sell it >> okay. i screwed up >> all right >> not a good answer the better answer would have been, i got rid of it. and i didn't >> but what was it that -- >> because -- okay because i think it's a franchise that is the greatest franchise of all these media franchises, and it's got theme parks that are filled and i keep thinking if it's better run, it would have a better mood. by the way, i'm not wavering

i bought some below here i'm not wavering this position that disney's not worth a lot. i think if you had serious changes, you'd see disney much higher now, i made a mistake and i talk a lot about, if you didn't run it open hand, carl, if i didn't have to run an open hand, you wouldn't know that i held on to disney that doesn't make it better, but i believe, genuinely, that disney, run by someone else, would do better. it would do better and i didn't want to give up on a franchise and then discover one day that it turns out a new person's at the helm and the st stock's at $120. that's why >> that's an answer. >> new person at the helm. >> that's an answer. >> that's where a lot of the targets are, i would argue we haven't seen a wave of downgrades >> a lot of people feel like i do, that it's obviously become very poorly run. they have -- do they not have the greatest park franchise? do they not have unbelievable characters >> by the way, they've also got a pretty good franchise of

movies "black panther" this weekend >> why does it even matter it doesn't even matter because it's so poorly run >> $180 million at the box office matters a bit, doesn't it >> not one bit with that company. look, i made a mistake with this what i've made mistakes i've been in the business for 40 years. >> we're well aware of that. it is interesting to listen, actually, to the reasons why you didn't sell it it's actually instructive. >> it's not coinbase i'm not -- look, it's not sam bankman-fried disney >> no. no, it's not it's not backed by -- >> it's not chimerical it's not alchemy >> none of those >> the bulls will point out, jim, and the omniverse or metaverse pay off, the ip will get a whole new arena in which to play. you've always aukdtalked about s a stock you pass on to your kids >> that's why it was so hard to get rid of i didn't want to trade in and out because when people ask me, i just had -- i just had a

daughter born. what should i buy? i said, buy disney because i thought the franchise would triumph over even anyone who's running it that was -- that may temperorarl be wrong what is in the review? >> in what review, jim >> the review, the memo. what's in the memo about what's happened >> what is in the memo would you like me to read it to you? i have it here >> it's certainly better than not reading it >> it's about a journey. he's establishing a task force of executive officers, the cfo, general counsel, this team is going to make the critical big picture decisions necessary to achieve their objective. >> horatio and christine were involved was he involved? >> i understand what you're questioning, and it's potentially interesting. >> yeah, you could say i'm not angry. it doesn't matter. it's just money. that's really not how i feel it's a charitable trust. it's run publicly. the network supports it. and i believe that -- and still

believe that chapek, no matter what he does, no matter how hard he tries, cannot try this franchise. it's that powerful >> meantime, we'll talk more about the implications as some of these hiring freezes work their way out of tech and into services >> that's the recession's in tech >> it's not just disney, obviously. >> right >> how about solana? how we doing with solana is it the time to buy solana >> we're going to spend a little more time on ftx for sure. >> are we early on solana? there's 200 crypto coins worth about -- there's six that i found that made no sense at all, including one that has my name, whatever that is >> cramer coin >> how about serum tokens? how are those doing? >> serum tokens? >> because ftx's largest asset was $2.2 billion of serum tokens >> i was at cvs this weekend could i have gotten serum tokens is it one of those things where you have to use the machine? i'm not doing that i'm not self-checking out the serum. no way >> cramer's "mad dash" and the opening bell coming up in a moment don't go anywhere.

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>> let's get you to a "mad dash," and then we will begin with the opening bell, a little more than two minutes from now walmart, target, we talked a bit about upcoming important earnings from these significant retailers. >> exactly and bank of america put out a piece that i found quite surprising that said that target, which reports to the 16th, and walmart, which reports tomorrow, are going to have traffic slowing, and they expect fourth quarter promotions up i think brian cornell at target would say, what do you think i took the charge for? got the right inventory. this also has a lot to do with groceries. >> right to remind people, very large inventory charge, remember, last quarter at target. took a big writedown, so your point being, they've gotten all that stuff out of the way. >> they say grocery comps could -- they've raised the prices -- could negatively impact the mix

now, i think that both these companies are doing quite well this is all the problem i have with the so-called recession if target's doing well, what kind of recession are you having if lennard price target is raised, what kind of recession are you having the answer is, well, take a look out west all the companies that never came public, all the companies that are sitting there in the queue, all the companies that came public that are, you know, like fig i just mentioned that. i don't mean to pick on them no, i do mean to pick on them. barclay's. a comedy of errors that a lot of companies have inflicted on us these were not disney. as foolish as i was to stick with disney. i had the horse sense. >> i haven't looked at figs but i'm going to look right now. >> where are you on oatly? >> oatly was a miss and a lower guide today. >> too early >> we're going to get a lot this week jim mentioned target, but lowe's, t.j. maxx, ross, foot

locker, kohl's, macy's, obviously, the big ones would be walmart and home depot tomorrow. >> yeah, look, i think that the consumer still has money left. i think that's important to point out. the grade resignation keeps happening. >> opening bell. at the big board, it is the first etf to move back to floor trading. at the nasdaq is nwta, lead technology company focused on mobility jim, you mentioned excess savings. morgan stanley last night said, yeah, there's a lot of kpexcess savings left but it's now concentrated in the upper income strata they say the top 20% may have 70% of leftover excess savings >> well, we know that we did a piece last week. two-thirds of the country still lives paycheck-to-paycheck,

which is an indictment upon capitalism, frankly. how come more people are not making money given that rich people have so much money? >> that's been a long-term issue, unfortunately those numbers have not changed that much through the years. the number of people who have a certain amount in their bank account, which is just, you know, very minimal >> well, david, when you have talked to people who remember lai laid off by facebook -- >> i haven't talked to many people who have been laid off by meta, have you >> yeah. the preponderance -- well, preponderance. i'm sorry. too anecdotal. it's anecdotal that they want to find jobs. they have good money but they're not going to bali. there's not a lot of bali jumping. there's more like finding another job at a similar company that, frankly, is not hiring, which is why i keep talking about, you know, if you talk about elon musk, twitter is not hiring >> no. twitter's definitely not in hiring mode right now.

it may need to be, given how many people have left. it's a private company as we know with a good amount of debt, $13 billion, and we've certainly been following it in terms of what he is doing or not doing, decisions that are being made right now. >> well, do you think entertainment is part of the great recession? i shouldn't call it great. the new recession? what do you want to call it? i'm saying, if there's a recession -- >> people will cut back on their -- >> well, the entertainment companies, all of which have so much debt. >> oh. you mean -- >> if recession. >> it's not a great time to be five times levered >> yeah, but -- but they bought back $6 billion worth of bonds they have -- this is warner brothers it's a -- you have $10 billion in ebitda. >> warner bros. discovery, right, $50 billion in debt they're still pointing to $12 billion in ebitda. >> that's a lot.

>> if they do that, i think th market would react positively. >> what's on the board there dr. john >> yes, he is. it's going to be liberty media davis later this week too. >> are you going to vihave an interview? >> my annual sitdown with john malone >> i'm not saying a thing about warner bros until you have that sitdown. >> how about meta, though? how about in general that complex of -- well, it's not a mega cap anymore meta was up 25% last week. >> he bit the bullet >> last week >> he, being mark zuckerberg >> we have amazon down 2.5%. my point is, we had an incredible rally last week in these names. >> well, i mean, mark zuckerberg is saying, listen, we're going to try to get revenues in line here, get the expense structure in line. that's a big deal. >> i mean, you can't really see it from that chart look at a month, it might come back a bill better >> how many people has amazon

laid off in 100,000 or 200,000 is it like the army after world war ii when they were letting go >> they hired 800,000 people in two years. >> certainly listening to bezos on cnn earlier this morning talking about either a recession or one to come and just giving small businesses and households advice of taking risk off the table, in his words. >> small business is -- look, billionaires are hard to disagree with, but small businesses, according to paycheck, which is the largest small business check issuer, small business is doing fabulously it's actually no let-up whatsoever so, while i appreciate what he is saying, it's not where the "if" recession is headquartered. >> here's what bezos said on cnn earlier today. >> you know, large-screen tv, maybe slow that down, keep that

cash, see what happens same thing with a refrigerator or a new car or whatever this takes some risk off the table. if you're a small business, maybe delay some capital purchases. do you really need that new piece of equipment maybe it could wait a little bit. have some cash on hand, just a little bit of risk reduction could make the difference for that small business if we do get even more serious economic problems so you got to play the probabilities a little bit >> there you go. it's interesting that -- a lot of rich people come on and say, well, it's the end of the world. the end-of-the-worlders. that was just wise advice, you know pull your horns in a little, don't blow your head off i felt that at my restaurant take risk off the table. >> suszy orman better watch out. i mentioned f.a.n.g. but it was up a lot last week >> there's big f.a.n.g. week >> it was a very big f.a.n.g. week by the way, the reverse as well. pharma, on friday, i remember

it you were like, what's going on with j&j it was across the board. maybe it was a reflection of the fact that the democrats were more likely to keep the senate, which obviously has occurred now we've got merck, j&j >> eli lilly, a competitor >> all of them up. >> it's important. lilly was down 16. >> you saw the people trying to tie that between the fake lilly tweets over the weekend and the price action in the stock, although "washington post" today says that whole twitter verification fiasco did cause a panic within the company >> i was happening they would select a ceo who would be client-facing and that he would be internal, musk. that was rejected. >> we saw your -- we saw him say, no to you to your succession of john

ledger >> easy come, easy go. >> at least you get a response from musk. >> he's a legitimate guy, and i like to think that -- >> john ledger's totally a legitimate guy >> i went to john to say, do i press this >>o john, who watches the show,i don't know why he doesn't become a contributor here >> he's such a smart guy a lot of people told me they thought he would have been an absolutely terrific choice -- >> it's funny, these pictures we show of him. >> yeah. i just think it's -- look, i think that he'd be remarkable, okay i just think he would be remarkable now we got the -- that was a definitive no from -- i regard it >> literally >> it wasn't like when i went to goldman and they said, we're not offering you a job, and i said, that's a clear maybe >> only disney would give you that kind of clarity on your park in new mexico >> it's not going to stop him from making continued suggestions to every corporation about what they should do.

>> win of the things he really screwed up on was he didn't even emphasize the theme park we're talking about chapek again. >> here we go again. >> important company >> there are many important companies. >> i know. >> by the way, there's also -- >> tjs important company down 7 cents. where's solana >> i don't feel like we fully explored that, jim, in terms of what the impact is going to be or at least the concerns right now about the ftx collapse and the bankruptcy yes, sam bankman-fried, we assume he's still in the bahamas. we got to send somebody down there to go see. >> there were people who were interviewing him he was very legit. >> very legit. and really, at this point, we're till just dealing with, a, reporting from any number of different news sources in terms of what customer accounts and how much went from customer accounts to alameda and b, what we heard from him in his tweets, and of course, from the bankruptcy filing but so many questions, very few answers. by the way, you haven't even mentioned this hack over the

weekend where perhaps another -- perhaps as much as half a billion dollars worth of customer accounts. >> here is what i want you to know how's doge coin, polygon how's polka dot coin doing chain link shiba? cosmos that's $8 billion worth of money. mr. jay powell is about get really lucky, i think. >> there's binance >> that's just a few i've got more if you would like some how about cardano? >> there's so many coins >> is this the time -- i want to know if this is solana's time. >> the focus i have heard more about is on the stablecoins, the main one being tether, which is used so often to transact into buy bitcoin. >> should i take my money out of fidelity cash reserve? >> as i said earlier, people pointing me to this attestation put out by -- and reviewed by bdo in terms of what are the assets that back up the tether

stablecoin >> it's not really been a reveal the whole thing's not being revealed >> it goes to the lack of transparency overall in this entire ecosystem, the lack of regulation that we were already well aware >> david, it was defi. you have no right to criticize de fi. do you know anything that's how they argue. you were saying, look, i'm really worried they would say, it's defi, you idiot. like how you said about me with disney >> i didn't say you were an idiot. >> okay, it was implied. >> i don't really think it was >> with the people -- with bicycl bitcoin, it's like, you're a complete moron that you even question ftx >> it is true, it's been very difficult. i've in some ways -- >> you mean how vicious they are? >> the inability to fully understand things but there are things i do understand i understand leverage. i understand confidence. and i understand when you have a lot of leverage and not a lot of

confidence, badthings happen and so, that's kind of where we are. >> you're directly questioning the jpmorgan analogy did larry fink interview sam bankman-fried from jane street >> i don't know. >> we have people -- i shouldn't say. i don't know if larry did it someone said they heard larry fink interviewed him i shouldn't say that i like larry very much but sam bankman-fried -- this guy, just so where no -- was tof his class. there were many people who felt he was the smartest person they've ever met ellison, we barely talk about her. >> who >> the number two. we don't know who was in on it, so to speak. we don't know who was in on it >> we don't even know -- in on what >> in on what the looting of the -- looting of ftx. >> of people's customer accounts >> in on what? >> when you have a liability between $10 billion to $50 billion, it gives you a sense as to how little we really

know >> okay. >> is that all right >> yeah. i feel better. how about this robin hood position >> could be over 100,000 creditors, foreign entities all over the place this is going to be -- >> i'm telling you, jay powell, this could really snowball now, i don't want it to snowball i'm just saying that, remember, i'm trying to find the epicenter of the if recession, whether it's going to be -- is it crypto have you ever seen the number of companies that are involved in this i mean, there's layoffs. >> i want to address that. for example, on friday, citi said crypto is too small and too siloed to cause contagion but you're arguing it's large enough to make a dent in the fed's mission. >> i think the whole idea that this is the enron versus lehman, you know, comparisons, as my mother said, are odious. it's entirely possible that it could be its own animal, given the fact that the coins that i mentioned, those very key coins, worth $8 billion and pretty much, i think, punchlines. if henny youngman were still

alive -- >> their whole origin is based on a joke. >> i think we want to -- mstr often comes on microstrategy >> he's a very good spokesman for bitcoin. >> david blaine. >> he sewed your tongue -- >> he sewed dr. oz's mouth dr. oz back then, they weren't doing any cardiology what you got there >> i'm still trying to figure out what serum tokens are. >> well, david, i gave you some fabulous tokens and you completely ignored me. we have to go to carl, but i really think you should focus on the ones that i talked about because they are the blue chips of the -- it's not a joke. >> it's not funny. it really isn't. >> it's not funny. people have these. >> the president did make some additional headlines in the q&a speaking in bali kayla tausche has all those

headlines. good morning, kayla. >> good morning, carl. at the top of this show, you heard the president say that he does not expect a new cold war in the indo-pacific. he does not see any imminent action by china to take taiwan, and he said that the outcome of the u.s. midterms was essentially proof positive that the u.s. agenda on the world stage is strong and is ready to get back down to business. now, in the aftermath of what we showed on this air, there were more questions about exactly what's going on in ukraine and whether the retaking of kherson by ukraine is a turning point in the war. president biden wouldn't call it just that. but he said it is a significant event in that ukraine will be the top priority at the g20 where they figure out -- will figure out whether there is any room to compromise or any interest in compromising on behalf of ukraine to get some sort of negotiated outcome he was also asked about how he found president xi on a personal level, whether he found him to be more confrontational or

conciliatory president biden said, neither. but he felt that president xi was straightforward, but there were also some areas in which the two countries could compromise, and they set up specific work streams for counterparts in both countries to be having those discussions moving forward that's a significant development, because beijing had previously restricted certain communication channels after house speaker nancy pelosi's visit to taiwan in august. to that end, the secretary of state will be visiting china at some future date that was one outcome of this meeting. but the prc outlook from the meeting was decidedly less rosy. according to state media, president xi was quoted as saying that he was admonishing the building of barriers or pushing for decoupling on the economy, so certainly, two very different readouts from this meeting, but the two leaders will be seeing each other much more in bali after this very formative three-hour session guys, back to you. >> important thank you, kayla kayla tausche on the president's

trip and g20 overall let's get to bob pisani with the dow down 28. hey, bob >> it's a flat open, butst it's been a very interesting weekend, a lot of discussion about what's going on in light of these recent rallies we've seen in the market and what it means for the earnings situation take a look at the sectors again, i look every day at risk on, risk off let's call this sort of an even day. big names, china's doing well. we had some more stimulus in the real estate sector for china, so some of the chinese stocks are doing better ark innovations, slightly underperforming the overall markets. semis, okay. amd was up on positive comments from analysts. semiconductors, i would say that's fair right now. flattish to slightly down. metals and mining, another group that's flat. so let's just call this a bit of a mixed open here with ark innovation, the weak mover look at s&p movers here. sort of a mixed crowd. amd's positive they had ubs baird had some positive analyst comments some of the pharmaceutical stocks opened flat to slightly on the upside.

liu xi lilly is negative but it was positive amazon and tesla are weighing on the s&p. so, recent rally's been predicated on three positive events that we saw last week number one, of course, progress on the fed and inflation number two, covid lockdowns in china easing up a little bit and finally, some hope for progress in the war in russia and ukraine, capturing the strategic city of kherson there. so, the recent rally, we had the progress on there. covid lockdowns in china and russian invasion we're 11% off the lows in the middle of october. but the earnings are going down here so, that's the market dilemma right now. s&p 500 prices are rising, but s&p earnings trends are moving to the downside. and that's a real problem overall for the market because right now, you've got to make some real arguments here so, here's what's been going on. the s&p 500 multiple is about historic average right now

so, when you have rising prices and earnings going down, you have to argue that the multiple's going to expand, and it really can't right now because at 17, that's the average. if it goes to 19 or 20, now you have to be predicated on the idea the market and the economy is expanding but it's not it's in a difficult time right now. so, how are you going to make that argument? this is the problem right now. and here's the flat earnings that we have been seeing here. fourth quarter is now negative 2023 used to be up 8 or 9% and now it's down to 4 most analysts think that earnings for 2023 are going ton flat, so how are you going to push the market forward when earnings are actually going to be down to flat and overall now the economy now has got to have a soft landing that's a big argument for the stock market to make, and i think we're going to have a discussion and plot about that in the next couple months. >> well, bob pisani, a quick reminder, you can get in on the cnbc investing club with jim sign up and find out more at

cnbc.com/jointheclub, or you can use the qr code on the screen. it takes you right there plenty of good stuff, especially given what's coming at us in the next few weeks before we go to break, check on bonds today as we're going to get a lot of fed speak this week, beginning with williams tonight. yields a little bit higher after waller in australia overnight said these rates are going to stay high. this isn't ending in a meeting or two we'll be right back. sfloec this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn.

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we get nearly 15% unemployment . watching some dow laggards we mentioned weakness in mega cap tech microsoft leading you down, apple is there, too we'll get to boeing research overall, 3970 is holding is "stop trading" with jim is up next

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polygon, down 3.2%, $8 billion marketing cap. polka dot, down. and sheeba down 2.6, $5 billion market cap the elusive solana is down 2.9%, $5 billion market cap. those are bigger than many of the stocks - >> you add them all up, it's one johnson & johnson, or two. >> this is real people's money, they have a chance to get money back this is good this is not powerball, people. real money, got a chance to go and, you know, binance, aren't they the first national bank >> we used to think sam bankman-fried was the guy -- >> james street -- >> that day has ended. >> you're there. >> m.i.t.

>> who else gave them -- good school >> yeah. >> i can think of a few people. >> you've been watching twitter over the weekend. >> i was offered a job at m.i.t. they do have history they told me this is my history professor. how about the history of crypto. >> that will be interesting. >> michael lewis - >> this is going to be a good movie. i guess michael lewis is already on. >> everybody is in it. when we come back, we'll stay on top of the ftx fallout as the dow is staying positive don't go anywhere. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ ♪ ♪ as you plan, protect and retire. connecting to opportunity is just part of the hustle.

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good monday morning. welcome to another hour of "squawk on the street. live at post 9 of the new york stock exchange we are coming off the best week for the s&p since june trying to add a few more gains at the open on monday. looking forward to a better read on the consumer from some retailer earnings throughout the course of the week some good eco data and fed speak. >> and retail sales, too.

30 minutes into the trading session. here are three big movers we're watching this monday morning we'll start with amd getting upgraded at baird and ubs citing positive cyclical demand on the flip side, hasbro getting a double downgrade from bank of america from buy to hold calling it a deep dive on the company's magic card game business, saying hasbro has been overprinting cards destroying the long-term value of the business finally, take a look at shares of oatly, tumbling. larger than expected quarterly loss saying their results were impacted by a number of factors, including china covid restrictions, production challenges and a stronger dollar shares are down 19% right now. down more than 75% year to date. we will begin with president biden and chinese president xi meeting earlier today at the g20

summit let's get to eunice yoon live in beijing with more. hi, eunice >> reporter: hey, morgan in that three-hour conversation, president xi and president biden seemed to be able to make some progress in that they both agreed to continue to engage in the chinese readout, as well as in the u.s. readout, we saw that both countries were more or less reiterating their positions. the chinese foreign ministry put out a statement saying that president xi had essentially laid out to president biden what china's position is, and continues to be. he started with the taiwan issue. saying that taiwan is the first red line that might not be crossed. what was interesting is the chinese side acknowledged that president biden said that the u.s. does not support taiwan's independence or to china's president biden has said this in the past but it's positive that at least the chinese did acknowledge it

on competition, again, we heard that president biden had brought up the importance of competition in this relationship, but also that it doesn't turn into conflict the chinese side said that president xi had also agreed that that should be the case however, he did point out that this to the chinese would mean no trade or tech warriors, barriers, decoupling or severing supply chains saying all of that is detrimental pushing back on some export controls as well as some of the other reshoring by the u.s. of supply chains because it's bad for the chinese economy. when it comes to the human rights issues, the white house really seemed to make a point of saying that president biden had stressed that human rights was brought up in these discussions in a wide-ranging effort from the chinese side, there wasn't as much discussion about that, but they did say that

president xi more or less said that the chinese have their own chinese system when it comes to democracy as well as human rights so, not as much of an acknowledgment there but on ukraine, this is really, i think, where you see the big difference president biden had stressed the importance of ukraine and ending the war there. president xi in the chinese readout, again, no use of the word war, no blaming of russia in fact, more or less washed his hands of the chinese getting involved at all, saying they look to ukraine and russia having conversations and also the u.s., nato and the eu getting involved in those discussions with russia. guys >> eunice, stay with us. we want to bring in kayla and get nor color on the whole meeting itself kayla, i wonder, he talked about putting a floor in the

relations. obviously the framing of the competitive economic competition, the human rights element, or maybe just getting him on the record regarding the use of nuclear weapons around ukraine. >> yeah, there was a lot to be discussed, especially because relations had deteriorated in recent months, making this nearly three-hour meeting, carl, the most consequential of biden's presidency thus far. talks had stalled between the two countries since house speaker nancy pelosi's visit to taiwan in august today's face-to-face sought to change that, to take down the temperature and lower the possibility of a misunderstanding or military conflict, if each of the two countries understood the other's red lines. in the press conference after the meeting, president biden was asked whether he saw a new cold war forming or an invasion of taiwan imminent. here's how president biden answered >> i think the united states is better prepared than any country in the world economically and politically, to deal with changing circumstances around

the world. and i think that -- -- i think xi jinping, we agreed we would set up a set of circumstances where on issues that were -- that we had to further resolve details. >> so, that's a different sound bite than the one i was hoping we would run where the president said, i absolutely believe there will not be a new cold war i do not think there's any imminent attempt on the part of china to invade taiwan and i made it clear our policy there has not changed at all on another note, in discussions about russia and north korea, the white house readout said the two leaders agreed nuclear war should not be fought and cannot be won it led to a visit to china by the secretary of state there's no sign that hawkishness towards beijing by washington on economic issues is decreasing. as eunice was just mentioning. especially after the midterm elections, which is going to

make any progress harder to come by guys >> kayla, it's fascinating what this means potentially for trade relations between the two countries. it's worth noting that it wasn't that long ago, just a couple of weeks ago we did see this administration here in the u.s. put out the national security strategy, the national defense strategy still targeting china as kind of that strategic competitor. the pacing threat. also talking about specifically in that security strategy this need to not only counter china military, but work with china when it comes to things like climate as well. so, i guess, how does that speak to the emerging relationship here as -- i don't want to say frenemies because that seems like too light a term but that's essentially what we're talking about. >> on the economic front, morgan, i think it's important to note, we are well beyond an economic relationship where we are discussing whether tariffs will be kept on or off

the introduction by the commerce department last month of a broad set of sweeping export controls is essentially closing the door on china's ability to acquire certain critical technologies going forward. its very hard to put that gene any back in the bottle now that there's an expectation there could be -- there could be a house majority, even if slim in the house of representatives, there could be a republican majority that you would see some of the chairmanships by -- like mike mccall from texas extremely hawkish on china at the house foreign services committee and there will be even more hawkish economic policies to try to meet some of these lawmakers halfway. i think we are still going in that direction, not the other way around, which is why, you saw in the chinese readout they suggested that the relationshi needs to return to stable and healthy growth they need -- both countries need to ensure that the global economy gets back on track after

the pandemic, which would suggest there needs to be a return to free trade, but it doesn't seem like here in the u.s. it's moving that direction with china morgan >> got it. eunice, i want to get your thoughts on the other news you got ahead of this meeting from china over the weekend the country plans to basically rescue the property sector, essentially, with a 16-point plan to boost the real estate market and then this 20-point playbook aimed at reducing the economic and social impact of containing covid as well i imagine the timing, not coincidental >> that's difficult to know just because the chinese government is really a black box when it comes to exactly when these types of policies are announced. but, yes, as you said, what was interesting is for the property sector, the chinese government rolled out a 16-point plan it new orleans is aimed at trying to stem any type of liquidity crisis and problematic

mass defaults at the developers. the other part of this equation for the program is to try to get a little bit in there for home buyers so that people have an incentive to buy, such as making it a little easier for people to make downpayments. on the whole, the messaging still in that property program is that homes are for living and not for speculation. morgan, i wanted to bring up one other point. it was interesting in your discussion with kayla, there was some encouraging stuff in the chinese readout about the discussions going forward. the chinese side said that the u.s. respects the chinese system they acknowledge president biden's history of xi. they actually ran through a bunch of the communications area, which was a little further, it seemed like, from the u.s.'s economic policy and trade as well as the climate change one thing that wasn't there, was an acknowledgment of china's

contribution and business practices that led to the u.s. triggering all these policies. and i think that's something that could be a stumbling block going forward in this relationship >> great context and reporting from both of you thanks for kicking off the hour with us. kayla and eunice yoon. let's turn to crypto and the continued fallout from the collapse of ftx and subsequent bankruptcy of the company. our kate rooney joins us now to catch us up on all the latest. kate >> david, good morning we have new reporting with our cnbc investigative team on how all of this unraveled at ftx according to a source familiar with company operations, the qua quaunt trading firm, alameda was using funds from ftx in a way that flew under the radar of investors, employees and auditors we spoke to sources who say ftx and alameda kept these assets off of their balance sheets and ftx drastically underestimated

the amount it needed to keep on hand if customers wanted to cash out. part of that issue was the way the exchange was accounting for margin trades. according to the source, it allowed clients to borrow crypto from one another and not properly tracking the value of those. alameda was trading on margin and using a cryptocurrency created by the ftx exchange called ftt as chatollateral. we spoke to current and former employees that said it was a small inner circle that knew about the mishandling of funds bankman-fried refused to xhebt but he said margin took a hit. some users appear to have found a way to move money off of the exchange through essentially a back door in the bahamas argas saying it found unusual trading patterns when it came to ftx. digital collectibles that traded for $9 were selling for as much as $10 million this week on ftx.

this points to desperate customers looking for users in the bahamas to help. that was the only jurisdictions allowing customers to cash out bahama police are now investigating ftx and if any criminal activity occurred ftx with a suspected hack over the weekend. the new structuring officer says it's moving customer assets offline and the data damage at around $477 million. we heard from binance ceo in a twitter space, walked away from that deal. the bailout ftx just last week here's what he said. >> the stuff that happened at ftx is extremely surprising to everyone i mean, if i was writing a fiction, i couldn't imagine this stuff up >> he gave some advice to crypto traders in this environment. he said, if you don't know what's going on, just hold a couple of years and this will all blow away.

he also says, binance doesn't have loans or debt he says they don't owe anybody money, but he did question the liquidity of some smaller exchanges out there. he also said nothing is risk-free, as he put it. back to you guys >> yeah, perhaps good advice kate, listen, so many unanswered questions with regard to ftx and it could be months before we do. day to day right now, you know, there's a lot of concern well beyond that. people talking to me about tether, about other stablecoins and what are the reserves that really back them up. what are you hearing out there more broadly speaking in terms of this ecosystem and where people are concerned given everything we've learned and what we don't know yet in terms of the collapse and the secondary effects. >> that's causing a lot of jitters, david some of the unknowns i'm told there were hedge funds that work closely with ftx that likely had money tied up there

when we interviewed bankman-fried calling them power traders. the most profitable clients were trading $100 ,000 or more unclear what the split is between retail there, but those guys tend to have a bigger impact on the broader market if they're going to meet their own margin calls need to sell other assets to meet liquidity there's questions about the backing of other exchanges and the transparency out there in things like tether with audits and what you can actually trust in the ecosystem this has damaged trust and exchanges coming out saying, we don't have wet or, we're good, we're solvent. that's been famous last words for a lot of these ceos. we've seen it from celsius, the one that went bankrupt earlier this year. that's been -- right before they had an issue, have come out publicly and said, we're fine. we heard sam bankman-fried say the same thing

a lot of potential ripple effects we still don't know yet, david. >> so many so many things we don't yet know we'll keep following and reporting on it with your help, kate. here's our road map for the rest of the hour, including disney join, the growing list announcing layoffs from a memo from ceo bob chapek. elon musk's spacex is buying advertising on twitter. banking in the bahamas a closer look at u.s. creditors trying to seize bankman-fried and ftx's assets. we're backn mont ia me artede mom with $2000 and a passion for new orleans. i'm lauren haydel owner of fluerty girl. today, my tiny online shop has grown into eight stores. we're a must-stop shop for unique nola-inspired gifts. lauren doesn't just create cool nola merch;

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well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

welcome back to "squawk. dow is up 80 points. joining us, richard bernstein adviser dan suzuki dan, let me start with you i know you've been keeping some dry powder over the course of the summer, but now we've got obviously the lines of communication open between the president and xi you've got zelenskyy in kherson arguing this could be the beginning of the end of the war. not to mention some of the bounce we got last week. are you feeling more constructive >> i guess it depends, carl, on which market you're talking. we've been pointing out that the fundamentals for areas like

china have been improving. unfortunately, with respect to most markets, you know, the fundamentals are still deteriorating. in our view, you know, be the big issue here is that profits are going to continue to slow. we think we will be in a profits recession within the next couple of quarters and liquidity will continue to tighten. that's probably a pretty bad back drop for markets. not notwithstanding you can get a bounce that lasts a month or two, like in the summer, ultimately the market still has to reprice that growth recession. i think that's still to come >> jeff, it's not an uncommon view that this is all tactical and related to positioning regarding the trajectory of rates and that we're going to have a reckoning moment, maybe in the spring some say, regarding earnings are you on board with that >> i think the market's priced in a modest recession in earnings the market's been excited by this, maybe they're getting thanksgiving for an early santa claus rally from central banks i think the biggest risk may come from china.

china is preparing for a shift away from zero covid policy next spring from the vaccine approval, anti-viral pills, and reducing quarantine times. if they do, that could unleash a year of pent-up demand that could boost inflation for commodities and goods and consumer spending coming back in the world's second largest economy. that could derail the fed to pause rate hikes that may not be welcome news for investors. >> staying with that thread, dan, if we have actually seen peak inflation, i think going back to the china reopening thing, but if we have seen peak inflation, if we have seen peak long-term interest rates, does it matter when you have folks like fed governor waller coming out earlier today and saying that essentially the rates are going to stay. they're going to keep going up they're going to go up, stay high for a while until we see inflation get closer to our

target if inflation remains elevated, even if they step down to 50 basis points, they'll keep hiking and stay there longer does it matter if we've peaked or not in some other key metrics? >> no, morgan, that's exactly spot on. that's exactly the point i think if you think about the markets this year, you know, the predominantly the market action has been about repricing inflation and repricing the fed's reaction to inflation. i think more or less the markets are -- have it about right now if not a little more aggressive than what the fed's already indicating so, from that perspective, you know, as you look going forward, whether or not inflation has peaked or not, i think it has, is less of a question because the markets are priced for that story and repriced for the fed story, so the bigger surprise that still needs to be priced in is the growth story here and i think that's ultimately the point. everybody's ultrafocused on fed and, you know, whether he's blowing his nose or not. really it comes down to profits

growth that's where the next quarter, the next quarter after that as you continue to see those numbers get more and more negative i think that puts the pressure on markets, particularly the cyclical parts of the market on the flip side, that could actually have some positive implications for certain areas within fixed income. >> jeff, the dollar, the fact it has come off, come off significantly. at least last week it did seem to be somewhat of an indicator for stock market activity as well do you expect that dynamic to continue does the dollar continue to weaken or does it go back to the point you made earlier about inflation in 2023 and what a china reopening looks like >> very hard to see the direction of the dollar from here it's one of the hardest things to forecast. we think the dollar could be near a peak but maybe it hasn't peaked yet the most important thing for investors is what's working in the market and that's higher quality stock. high dividend payers and low

priced to cash ratios. they have been outperforming they're more prevalent outside the u.s. that's one reason international stocks are neck and in he can with the s&p 500 this year despite this incredible rise in the dollar you can set the dollar issue aside for a moment and focus on the fact that we are seeing this continued outperformance, even though october and early november in high dividend payers, short duration stocks, more prevalent in international benchmarks that's allowing the ftse, the nikkei and even euro stocks to do pretty well this year, despite that rise in the dollar. i'd focus on the international markets. >> finally, dan, crypto, is it too small and too siloed to cause contagion as citi argued on friday? >> i largely agree with that i think on a national scale, a global scale, when you look at the financial markets, you look at our economy it is probably too small to matter that being said, clearly there's local markets, you know, in big

individuals, big companies that get caught offside there's plenty of room to make more headlines here but ultimately when you step back from the fray, it's a very small portion of people's wealth, people's portfolio, transactions overall. i'm not hugely worried on a macro scale. >> hopefully we'll talk in the coming days, guys, one we get some retail earnings, a better read on the consumer thank you for helping us set the table, dan and jeff. see you next time. >> as we head to a break, take a look at shares of biogen they are higher. you may remember biogen said experimental treatment for alzheimer's, trading at the highest level since september of 2021 there is an overall positive tone to many of the other pharmaceutical names after a difficult day, certainly, on

friday we're back in two.

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welcome back to "squawk on the street." let's give you a quick check on the communication services sector the ticker is xlc. down more than 35% for the year. it's been led lower by a lot of the big technology names such as metaand alphabet another name in the group we're keeping an eye on is disney. according to memo from ceo bob chapek, the company is planning on layoffs, potentially, is and certainly a hiring freeze. hiring for the small subset of the most critical business-driving positions will continue, he says in the memo. goes on to say as well, a review of sg&a costs there is room for improved efficiency. that's just what leadership requires and i thank you in advance for stepping up during this important time. much of this, obviously, focused on reaching that important goal that chapek has outlined previously for profitability for

disney plus, the direct-to-consumer platform at the company in fiscal 2024 and as well making the company, he says, more efficient and nimble overall you can see the disney shares are responding positively at least overall to the market and, perhaps, to the latest effort as well morgan >> also had a pretty strong box office this weekend, too, with "black panther: wakanda forever. more on sam bankman-fried and the legal ramifications of ftx. back in two. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like...

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welcome back i'm kristina partsinevelos here's your cnbc news update at this hour. russia is denying reports that foreign minister sergey lavrov

was taken to the hospital yesterday after he arrived in bali for the g20 summit. officials say lavrov was admitted to a local hospital for a, quote, health checkup the foreign ministry said it was the highest level fakes. lavrov is the highest ranking russian official at the g20. a manhunt is under way after a mass shooting left three dead on the university of virginia in charlottesville. police are searching for a former uva football player, christopher darnell jones, who they say is considered armed and dangerous. gunfire was reported on campus late last night and a shelter in place order remains in place as authorities search for the suspect. a new nbc reporting about the january 6th committee. sources say the staff was informed they would draft final report on trump. a committee spokesperson or spokesman denied this report morgan, back to you. >> kristina partsinevelos, thank

you. the bahamas has long been a haven for ponzi scheme purveyors. how hard will it be for u.s. creditors to seize sam bankman-fried's assets there robert frank joins us with more. >> good morning, morgan. well, sam bankman-fried also cited friendly crypto regulation as the main reason he located in the bahamas, but there were lots of other benefits, like no taxes. the bahamas has no personal income, no corporate income tax, no capital gains tax or estate taxes. the bahamas remains on the eu black list for offshore tax havens you also have strict privacy and banking secrecy laws they're one reason there are over 270 licensed banks and trust companies just in the bahamas. very difficult there to get foreign editors to find client access to account information.

companies don't have to disclose shareholders, directors or even officers now, trust law in the bahamas can actually shield assets from u.s. creditors and you have special asset protection trust, which make it difficult for u.s. bankruptcy courts and even the justice department to find and recover assets bahamian security regulators have put several ftx companies into receivership. those are separate from the u.s. bankruptcy proceedings and could make for a much longer and complicated process. now, the u.s. does have an extradition treaty with the bahamas but it could take years for the doj to wind through the bahamian courts. >> robert, thank you so many continued questions there. investors, of course, in ftx are left in limbo after that crypto exchange filed for bankruptcy protection in the u.s. on friday joining us to discuss the legal ramifications is professor and associate dean at vanderbilt

university law school. teaches courses such as corporate bankruptcy, financial markets in the age of technology and securities regulation. those are also areas that we have questions about right now and i guess just starting off, you know, how complicated is this from your perspective, both there from a regulatory framework, legal framework, and those -- the creditors ultimately want to see some sort of recovery. >> david, thank you very much for having me on the show. there are reasons to think this bankrupt is going to be truly exceptionally complicated for three big reasons. firstly, we're dealing with 134 entities that are spanning across the globe in fact, we mentioned the bahamas earlier, but the coverage of ftx is completely global and that presents a lot of problems for the u.s in particular, having to coordinate across multiple jurisdictions when it comes to

figuring out where the assets are and being able to get recovery for creditors it also imposes other problems, because one has to coordinate with different courts and many of them have different rules particularly with respect to things like maintaining assets within their own jurisdictions for creditors within their own -- within their own countries. so, that creates a problem in and of itself. but there's some deeper problems here, too. which comes from locating the assets themselves. now, as we saw over the weekend, there was a big hack at ftx, what looked like a hack, around $470 million these are problems that are going to come up trying to locate the assets, figuring out how to control them and secure them, and then the question of valuation, which is central to almost any bankruptcy of this nature valuation here is going to raise exceptionally novel questions of law when it comes to thinking about cryptocurrencies, how to value potentially very illiquid tokens and what that means for growing concern value.

>> is that one of the main reasons why we have such a yawning gap in terms of 10 to $50 billion in liabilities >> that's one of them but there's also a huge amount of opacity. this is like a drama unfolding in real time we're fining out new things about the balance sheet almost every day. now, over the weekend, for example, it emerged that according to a report by the financial times that, you know, the balance sheet of alameda had approximately -- of ftx $900 million easy sellable assets in addition, part of balance sheet had a token called serum valued at $2.2 billion when the market cap is around $18 million. these are questions that relate to opacity, questions that relate to valuing very novel assets that trade in illiquid markets. in addition, we are in a crypto market now evolving in response

to the ftx crisis. trading conditions are becoming exceptionally tough. part of that will affect the value of these crypto tokens and potentially cause them to have -- cause the courts as well as -- experts to have further concerns and doubts about the valuation and exactly where the assets are and how to think about them dollar wise going forward. >> one discussion going on today is about burden of venue and where this -- were any court activity may be located. the journal today says the burden is not very high if a single email went through new york that could suffice. i wonder what you think of that and how material might a bankman-fried's twitter chains from last week be in any litigation >> look, i think in terms of venue, you know, the bankruptc filed in delaware is an extremely expert jurisdiction. it has some of the best judges in the country it has some of the best insolvency practitioners and experts in the country

at the same time, that doesn't take away from the fact that we're dealing with an incredibly complicated org structure. the financial times published the org structure over the weekend. it made the org structure look like a sudoku board. some jurisdictions may want to push back against u.s. authority here particularly when it comes to local creditors and being able to safeguard assets in their own jurisdiction when it comes to sam bankman-fried twitter threads, they were quite something to read last week i think they will obviously be extremely important when it comes to drilling down on some key issues for example, in relation to the corporate governance, risk management and compliance that led up to this crisis and this fiasco in the first place. >> you just laid out how exceedingly complicated this process is going to be yet we look back historically on

other financial firm implosions, how likely is it, based on those other instances in just recent history, maybe the last couple of decades, that customers are actually going to see their assets come back to them in some form or fashion, or a traction of them even >> it's a terrific question and i don't have a great answer to that i think there are a couple of things to look at, which is that when you look at the person in charge, john ray iii who managed the enron resolution, he managed to get back 50 cents on the dollar to creditors at the same time at the same time, there are many, many bankruptcies involved in limited recovery for the creditors. here there's a particular issue which is the balance sheet looks like it has an enormous hole in it there were $8 billion over the weekend but we don't have the full picture the asset quality is uncertain in terms of valuation.

thinking forward, there could be two aspects that could be relevant first, the crypto market implode going forward which could bring down the overall concern value and what creditors can recover, or because these things will take time, we may actually see the crypto market recover going forward. meaning that some of the tokens on the balance sheet will actually have more value going forward than we're seeing at present value today. these are things which could impact the recovery. one more thing to say is it will take time. this is an exceptionally complicated bankruptcy here. >> real quickly, just to wrap up here, what about sam bankman-fried's criminal liability here can regulators and the department of justice in your opinion have a case to go after him and actually get him on at this point or is it too early? >> it's early to say and hard to say but there will definitely be a couple of things to look at, which are questions of intent, obviously. you know, and that is going to be the key factor here when we think about things like fraud.

when we're looking into the corporate governance, there are serious failures the question is how much did he actually know about it, how much did he contribute? the thing with sam bankman-fried is he put himself forward as very compliance focused and someone who really pushed the credibility of this industry as being something very important to him so, how much he actually knew about it is going to be kiki for the regulators to establish when it comes to questions of liability and whether he can be responsible for fraud and wire fraud. >> appreciate your time. >> thank you for having me after the break, how to play the ongoing volatility in tech stocks, which are under pressure, but coming off their best week since april of 2020. we're back in three.

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welcome back we have an update on a story we brought you a week, week and a half ago police reports at the time voling john tyson iii, cfo of

tyson foods, entering the premises of a lady's house and sleeping in her bed because he was drunk. and on the call this morning, he apologized after that arrest saying, i want to let you know i take full responsibility for my actions. this was an incident inconsistent with our company values as well as my personal values i just wanted you guys to hear this directly from me and know i'm committed to making sure this never happens again meantime, stocks are lower nasdaq underperformers mike santoli looking at a year ago data. >> how far we've come in a year. november 19th was nasdaq overall peak ten days after crypto peaked in november of 2021 it was also when the fed said no

more dovish stance, we're going hawkish next year. so, peak-to-trough, nasdaq has gone down 37%. valuation has been relatively significant, although pretty controlled as well the nasdaq 100 went from 30 times earnings forward to about 20 right now still at a premium to the overall market there has been a lot of differentiation going on within this market. in fact, i go back to 2000 it was a more extreme version of what we've seen because the boom was much higher and then the bust was much more severe in the first year after the nasdaq peaked in 2000 it went down 60% after the 60% drop it was trading over 50 times earnings we never got to that point but it was interesting that nontech worked pretty well after the nasdaq peaked. small cap outperformed for years. i remember in the mid-2000s, value managers never saw it tech because it tanked. there could be more to go in terms of overall earnings. i think the crypto element is

fascinating. everyone has gone around saying, the fed tightens until something breaks if crypto is the thing that broke and nothing else goes down with it, that's probably in that positive but maybe a lot to hope for. >> how much do retail earnings this week, retail sales this week -- retail earnings in particular matter to this entire conversation i ask that because it does seem like you have economic growth slowing and companies battening down the hatches, and it almost feels like it's a preparation maybe for potential recession, as the fed does continue to tighten, even if it doesn't tighten necessarily as aggressively at each of the meetings >> that's right. it's still very much a two-sided argument here, morgan. you have things like united airlines saying, we see no slowdown whatsoever in demand. yet, the retailers, the sellers of stuff have seen a retrenchment what they say about the pace of consumer activity does matter.

we have lots of leading indicators of recession in place. we just don't have confirmation one way or the other >> what about the spillover into -- with crypto. we don't fully understand or really know transmission mechanisms, so to speak, at this point. >> i think it's it's probably a little less about linkages at this point than it is about a massive hit to paper wealth of people in aggregate. so what else do people own that owned a lot of crypto and thought they had more than they do now that nee is about people tightening up risk exposures and deciding to spend or invest less because of it as opposed to chain reactions in the system, at least that's the way it looks now. >> i was going to say it feels like we have rising capital costs, you tend to see more corporate failures that are companied with an increasing incidence of fraud every time there's a deflating of a bubble, usually fed induced, you start to see these

excesses wrung out of the system >> which is why we have all of these examples in the past to reach for to compare what's going on with ftx, whether it's enron or world-comor any of the rest >> thanks. talking a bit. we do have very happy news to share, and that is our own leslie picker and her husband evan welcomed a baby girl. noah simone, born november 10th. both mom and baby are doing well congratulations to leslie, evan, and now big brother asher, wishing them all the best. that is adorable >> the headband gets me. she's just precious. and you just mentioned it, but i have heard from mom directly that she's doing pretty good, all things considered. and we just wish them so many well wishes right now. congratulations. beautiful. she's perfect. >> wonderful news. >> fantastic >> a lot of babies happening around cnbc. >> we'll take a quick break with the markets a bit choppy but

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welcome back to "squawk on the street." i'm pippa stevens. stocks are mixed to start out

the week and consumer discretionary stocks are among the biggest laggards for a sector perspective within that group, a range of names are some of the worst performers including has bro, bath and body works and tesla. amazon is also lower after bank of america removed it from a list of best investment ideas. though the firm still has a buy rating on the stock. now, i'll send it back downtown and to you, carl >> thanks, pippa up next, we'll talk about today's weakness in tech stocks. check out the biggest laggards on the ndx, with the dow hanging on to a gain oabt pntf ou35ois.

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welcome back it was last week or so that we first got reports about the possibility of amazon layoffs, at least a round of what they called unprofitable businesses or businesses at this point that were not generating significant earnings, such as alexa. got a lot more details just moments ago from "the new york

times" and some others amazon plans to lay off approximately 10,000 people in corporate and technology jobs starting as soon as this week. that is from "the new york times. citing people who are -- have knowledge of the matter. those would be the largest job cuts in the company's history, morgan although they do say the total number remains fluid but would represent about 3% if they stuck with the 10,000 number >> 3% of amazon's corporate employees, and with more than 1.5 million as part of its global workforce, less than 1% of that, but one to watch as we see the stock trading down about 1% let's turn to elon musk and twitter. cnbc reporting elon musk's spacex buying an advertising package known as a takeover from twitter from the company's starlink constellation service now, that package would typically cost around $250,000 but in the past, but musk actually taking to twitter to

comment on this, saying spacex starlink bought a tiny, not a large package to test advertising in australia and spain. i think it's more reflective of starlink coming to market in a more meaningful way than perhaps advertising holes that need to be plugged at twitter. >> twitter where there are layoffs, now amazon and meta "tech check" will have a lot more on those. that will do it for us on "squawk on the street. >> good monday morning welcome to "tech check." i'm carl with deirdre and yon, who joins us live from las vegas. today, a big hangover for tech stocks after last week's big gains. why one strategist says buy apple peer plus, we will look at amazon and what comes next for retailers on this news out of the times and also ahead of results from bellwethers like walmart and target in the next few days and reports of layoffs there finally, wall street in the mood for chips today amid a